Prices fell on a month-on-month basis across all regions, except London where prices rose 1.2 per cent.

The capital is benefiting from strong overseas buyer interest, with the most expensive boroughs seeing the largest price rises.

The North West saw the steepest
decline, down 5.7 per cent to £156,431, followed by the South East with a
4.5 per cent fall to £297,564.

Asking prices fell 4.2 per cent across
the North to £142,200, by 3.8 per cent in the South West to £254,021
and 3.7 per cent in the West Midlands to £183,010.

The East Midlands and Wales both saw
prices drop by 3.1 per cent - to £157,249 and £162,912 respectively -
while prices declined by 2.8 per cent across Yorkshire and Humberside to
£149,226.

The smallest decline was recorded in East Anglia, down 2 per cent to £225,533.

Mr Shipside said it was encouraging
that terrace houses and flats rose more year-on-year than any other
property type, with bottom-end sales a 'key driver for the rest of the
market' as they indicate activity among investors and first-time buyers.